Gold stocks and US weigh on bourse
THE JSE closed softer yesterday with the all share index dipping below the 38 000points level‚ as markets remained concerned about the US fiscal cliff and awaited further developments on the situation.
At 5pm‚ the all-share index was down 0.15% to 37 991.31 points.
Gold stocks and resources weighed on the bourse‚ shedding 1.53% and 0.81% respectively‚ while platinum provided some upside closing 0.65% firmer.
“Our markets are possibly weaker due to the softer-than-expected PMI figures out of the US last night still filtering through to us and on uncertainty about the fiscal cliff in the US‚” GT247.com trader Oliver Russell said.
London’s FTSE 100 was flat (-0.01%) at 4.49pm and the Dow Jones Industrial index had inched slightly higher adding 0.24% at the same time.
Investors are concerned that the dis- pute between Republicans and Democrats in the US may go unresolved into the new year‚ triggering a series of tax increases and government spending cuts known as the fiscal cliff‚
Dow Jones Newswires reported that, in the latest twist‚ the White House immediately rejected a deficit-reduction proposal made by House Republicans late on Monday that called for $800-billion in increased tax revenue‚ half of what President Barack Obama proposed.
On the South African front, gold counters slid the most for the second day in a row.
AngloGold Ashanti lost 1.7% to close at R265.53‚ Gold Fields shed 1.78% to R103.75 and Harmony dropped 2.6% to R66.65.
ArcelorMittal shed 1.27% to R30.20 and Coal of Africa tumbled 7.14% to R1.69 after the miner yesterday said its Mooiplaats employees had embarked on an unprotected strike following the suspension of four workers.
Impala Platinum added 1.35% to close at R143‚ while Lonmin dipped 1.58% to R37.40 and Aquarius shed 5.29% to R5.91.
In another local development, gainers included Afgri, which is merging retail operations with agricultural firm Senwes through the payment of R93.7-million into a new company.
Afgri is an agriculture business focused on grain.
It also has interests in animal feeds, oil pressing and poultry production. Its shares gained 2.7% to R5.26.
A total of 179 million shares changed hands with decliners outpacing advancers at 174 to 137.
Another 66 stocks remained unchanged. – BDLive, Reuters